Malaysian oil and gas company Perisai Petroleum Teknologi has declared itself insolvent and has been classified as a Practice Note 17 (PN17) company.
On Tuesday, the company disclosed it is unable to pay the principal and interest of the S$125m ($91.9m) bond issued by its subsidiary Perisai Capital (L).
A PN17 company is one that is listed on the Bursa Malaysia exchange but is suffering from financial difficulties. Its shareholders’ funds are less than 25% of its total paid-up capital, and receivers may be appointed to take control of the company’s assets.
In order to maintain its Bursa listing, as a PN17 company Perisai must regularise its financial position within 12 months.
Either the Securities Commission or Bursa Malaysia Securities will set a deadline by which Perisai must complete implementation of the regularisation plan.
If it fails to ‘regularise’ its financial status within the set timeframe, Perisai’s listed securities will be suspended from trading and the company will be de-listed from the stock exchange.
